The yen spiked after the Bank of Japan surprised markets by failing to add further monetary stimulus. U.S. investors better be paying attention as this move may have far-reaching effects beyond Asia, determining winning and losing stocks here on these shores.
The Nikkei 225 index closed 3.6 percent lower and the was up almost 3 percent against the dollar through Thursday morning.
"The U.S. dollar and yen relationship has been a primary driver of the bull market in equities — as cheap borrowing costs in Japan and a rising dollar have fueled a global carry trade. That trade appears to be unwinding," BKCM's Brian Kelly wrote in note to clients Thursday.
Using Kensho, a hedge fund analytics tool, we looked at what happened to the S&P 500 when the Japanese currency rose by 5 percent or more versus the dollar in 90 days. This kind of increase has occurred nine times since 2006. We also found ETF winners and losers.